Tuesday, June 19, 2012

Housing heating up?

Like most everything else in housing, the market for new construction homes is on the upswing. More buyers are looking at homes, and homes are getting sold. It's no wonder builders feel good about 2012 and beyond. Builder Confidence Doubles In 12 Months The National Association of Homebuilders released its monthly Housing Market Index for June. The index is a measure of homebuilder confidence. The report read 29 -- a one-tick increase from May and more than double the reading from one year ago. June's HMI marks the highest reading since May 2007. When the Housing Market Index reads 50 or better, it's indicative of favorable conditions for builders in the single-family, new-construction market. Readings below 50 indicate unfavorable conditions for builders. For some perspective, the index has been south of 50 since April 2006 -- a entire year before the peak of the U.S. housing market. Builders are on the street-level and see this business as good as anyone. For the past 12 months, they've been encouraged. Lots Of Interested Buyers The monthly NAHB Housing Market Index is not a "single survey" -- it's a composite one. The trade association sends three separate surveys to its members and roughly 400 builder-members respond. The survey asks questions meant to gauge the current and future health of the business. The questions cover current single-family home sales volume; projected single-family home sales volume for the next 6 months; and, current levels of buyer "foot traffic". The results are then compiled into the NAHB Housing Market Index. In June, home builders responded as follows : • Current Single-Family Sales : 32 (+2 points from May 2012) • Projected Single-Family Sales : 34 (Unchanged from May 2012) • Buyer Foot Traffic : 23 (Unchanged from May 2012) Of particular interest to today's new construction buyers, though, is that the nation's home builders report higher levels of single-family sale and expect sales volume to increase over the next six months. Buyer foot traffic is high and mortgage rates are low. Get Mortgage Rates And A Purchase Pre-Approval Mortgage rates are cheap and they're combining with low home prices to make homes very, very affordable. No matter your downpayment -- from 3.5% with an FHA mortgage to something bigger -- housing payments are low. Planning to buy new construction this year or next? Consider moving up your time frame to get your best deal.